Ontario the first province to sign agreement in principle with the Government of Canada on the Canada Job Grant
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OTTAWA, March 6, 2014 /CNW/ - The Honourable Jason Kenney, Minister of Employment and Social Development, today announced that Ontario is the first province to sign an agreement in principle on the Canada Job Grant.

Announced in Economic Action Plan 2013, the Canada Job Grant is an innovative way of delivering training that will lead to a guaranteed job. It involves employers in training decisions so that Canadians will be equipped with the skills and training they need to fill available jobs. It is designed to be flexible enough to meet the needs of businesses of all sizes, in all industries and regions.

The Canada Job Grant is part of the Government of Canada's commitment to address the paradox of too many Canadians without jobs in an economy of too many jobs without Canadians.

Quick Facts

According to the Conference Board of Canada, Ontario is losing out on as much as $24.3 billion in economic activity and $3.7 billion in provincial tax revenues annually because employers cannot find people with the skills they need.

Rising retirement in the Ontario construction industry will result in the need to replace as many as 83 000 skilled workers over the next decade.

In the next 10 years, Canada is expected to need 319 000 new workers in the construction sector, with another 145 000 new workers in the mining sector and 130 000 new workers in the petroleum sector needed by 2020.

Quotes

"Our government's top priorities are creating jobs, economic growth and long-term prosperity. The Canada Job Grant will ensure that employers put more skin in the game and that skills training leads to a guaranteed job. This is good news for Ontarians who will have better access to training that leads to real, guaranteed jobs and who will get better bang for their buck on funding for skills training. It is also good news for the Ontario economy because the Canada Job Grant will increase employer investment in skills training and help employers train Canadians for jobs that need to be filled so their businesses can grow and succeed."The Honourable Jason Kenney, Minister of Employment and Social Development

The agreement in principle signed today includes the renewal of the Labour Market Agreement—now renamed the Canada Job Fund—and the creation of the Canada Job Grant.

Canada Job Fund

The current Labour Market Agreements, created in 2007, are being transformed into the new Canada Job Fund to ensure greater employer involvement in training. Nationally, the Government of Canada will continue to provide $500 million annually to the provinces and territories for investments in skills training through the Canada Job Fund. Ontario will continue to receive approximately $192 million—Ontario's per capita share of the $500 million.

The Canada Job Fund will now include $200 million of employer driven training which may include funding for the Canada Job Grant or other existing employer driven training programs. In Ontario, this means approximately $77 million of their Canada Job Fund allocation will be spent on this employer driven training.

Canada Job Grant

The Canada Job Grant will help Canadians get the training they need for available jobs and put skills training decisions in the hands of employers. It will provide up to $15,000 per person for training costs, including tuition and training materials, which includes up to $10,000 in federal contributions. Employers would be required to contribute on average one-third of the total costs of training.

The provinces and territories will have full flexibility on the source of funds for the Canada Job Grant. They may be sourced from provincial/territorial allocations under the Canada Job Fund, the Labour Market Development Agreements or provincial/territorial sources.

The Grant will be for short-duration training provided by an eligible third-party trainer, such as community colleges, career colleges, trade union centres and private trainers. Training can be provided in a classroom, on site at a workplace or online.

All private and not-for-profit businesses with a plan to train Canadians for a new or better job will be eligible to apply for a Canada Job Grant, once implemented.

The Canada Job Grant will be flexible enough to meet the needs of businesses of all sizes, in all industries and regions. Small businesses will benefit from flexible arrangements, such as the potential to count wages as part of the employer contribution. This will help ensure that all businesses, regardless of size, can fully participate in the Canada Job Grant.

The Canada Job Grant will ensure that employers participate meaningfully as partners in the skills training system, sharing in the associated costs. This will ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.

The Canada Job Grant is strongly supported by employers and other stakeholders including: